European stocks were mixed as traders weighed concerns over China’s debt burden against dovish comments by a European central banker. The Stoxx 600 was little changed, while US equity futures extended losses. German government debt advanced and money markets amped up easing bets after the ECB’s Isabel Schnabel told Reuters that further interest rate hikes are unlikely.
At the same time, emerging-market equities fell more than 1% after Moody’s Investors Service cut its sovereign debt outlook for China to negative. Haven assets like the US dollar and gold traded in the green.
November’s epic rallies in global equities and bonds have failed to continue into this month, suggesting some investors are concerned the market’s rate-cut wagers have been too aggressive.
“I think people are going to get a lump of coal around Christmas” in terms of anticipation around “big rate cuts,” Cole Smead, portfolio manager at Smead Capital Management told Bloomberg TV.
US jobs data later in the week are expected to help gauge prospects for a soft landing.
London stock exchange suffers third outage in three months
London Stock Exchange Group Plc suffered a third outage in a few months as trading was halted in about 2,000 smaller shares. Trading in the affected stocks was interrupted shortly after 9:15am local time on Tuesday and resumed about an hour later, according to the bourse operator. In October, trading in hundreds of smaller shares was halted in the final 80 minutes of a session. And last month, LSEG’s FTSE Russell indexes suffered a 40-minute outage, disrupting trades in the UK, Italy and South Africa. “It doesn’t bode well for the LSE as it isn’t the first time,” said John Moore, head of trading at Berkeley Capital Wealth Management.